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Targeting Incentives to Reduce Habitat Fragmentation

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Author Info
Lewis, David J. (University of Wisconsin, Madison)
Plantinga, Andrew J. (Oregon State University)
Wu, JunJie (Oregon State University)
Abstract

This paper develops a theoretical model to analyze the spatial targeting of incentives for the restoration of forested landscapes when wildlife habitat can be enhanced by reducing fragmentation. The key theoretical result is that the marginal net benefits of increasing forest are convex, indicating that corner solutions--converting either none or all of the agricultural land in a section to forest--may be optimal. Corner solutions are directly linked to the spatial process determining habitat benefits and the regulator's incomplete information regarding landowner opportunity costs. We present findings from a large-scale empirical landscape simulation that supports our key theoretical results.

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Paper provided by University of Wisconsin, Agricultural and Applied Economics in its series Staff Paper Series with number 531.

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Date of creation: Nov 2008
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Handle: RePEc:ecl:wisagr:531

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